Should DHCP server automatically update A and PTR record?

Domain controller (dc1) running Windows 2003 with DNS server and DHCP server.
In the DHCP scope DNS option tab, there are two choices:
[v] Enable DNS dynamic updates according to the settings below:
  (v) Dynamically update DNS A and PTR records only requested by the DHCP clients
  () Always dynamically update DNS A and PTR records
[v] Discard A and PTR records when lease is deleted
[] Dynamically update DNS A and PTR records fro DHCP clients that do not request updates (for example, clients running Windows NT 4)
(v means my current settings.)

I see that NT4 clients get IP from DHCP server, but DNS record is not updated.
I also see old DNS record in the list. For example, non-live host with some IP. Lease expired already.

Q#1. Should I choose 'Always dynamically update DNS A and PTR record' option?
Q#2. What options (above) should I use if I want to update DNS record dynamically?
Q#3. Under what situation is the first option (update only if requested by client)?

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With NT4 and previous Windows clients, I would recommend that you use this option, yes.  However, whether you do it for non-Windows clients is up to you, you have to consider whether DHCP knows the computer name or not.

2000, XP, 2003 and Vista clients register their details directly in DNS.

If you have multiple DHCP servers, make sure they are both members of the DnsUpdateProxy security group in Active Directory or they won't be able to modify changes made by the other server.

So, I would recommend option (1) if you only have Windows clients.  I'd also recommend that you select the option to dynamically update DNS for clients that do not request it.

Also make sure you've configured DNS aging and scavenging on each DNS server and on each DNS zone.

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Brian PiercePhotographerCommented:
If you enable 'Always dynamically update DNS A and PTR record' then your NT4 clients will get their DNS updated (they are unable to do it themselves), Others will also get updated as well - but this does not matter - better to have the record updated by both the client and DHCP than neither.
Thanks for the points :)
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